Because most of us don’t have to think about our auto insurance every day, when it is time to renew the policy or handle the effects of an accident, it can all seem quite complicated.  In addition, there can be ideas about personal auto insurance that we have learned or heard of over the years that are simply not true.

Here are a few common ideas about car insurance and the truth behind them.

Fact or Fiction:

I Chose the “Full Coverage” Option and Everything is Covered

Fiction: While “full coverage” generally means “very good” coverage, including collision and comprehensive, it’s best to sit down and look at your policy to be sure your coverage matches your individual situation.

 If I Let My Friend Borrow My Car I’m Still Covered

Fact: Generally this is true, to a point. However, use caution. If limits are too low, the drivers insurance may be used and you may also be held responsible for excessive damages. Your insurance does extend to the driver of your car if you only let them borrow it for a short time and not on a regular basis.

I Will Pay More Insurance for a Red Car

Fiction: While it may be true that law enforcement can more readily spot speeding red cars than other colors, insurance companies do not ask what color your car is and do not take this into consideration when quoting rates.

A Speeding Ticket Will Raise My Rates

Fiction: This may have been true in the past but times have changed.  Many factors are used to determine the best car insurance rate for you.  If you have a clean driving record and you get a speeding ticket, many companies will forgive this ticket.

Comprehensive Cover is Full Coverage

Fiction:  Comprehensive coverage may have a misleading name.  It does not cover collision damages from an accident. It is used in conjunction with collision coverage to handle losses due to fire, theft, vandalism, or weather events.

I Bought  a New Car so I Have 30 Days to Get Insurance

Fact: This is generally true but does vary by insurance company and state.  Some only extend coverage for 14 days so be sure to check with your company or get new insurance right away.

My License Won’t Be Affected if I Lose My Insurance

Fiction: Not true anymore! Most states now have direct, electronic reporting between car insurance companies and the DMV in your state.  Auto insurance is the law and it is much harder these days to not follow it. If you don’t you may lose your license.

My Car Accident Will Raise My Rates

Fiction: If you are less than 51% at-fault for the accident, your rates may not be affected at all. Some companies also have accident forgiveness.  Be sure to check your policy if you are involved in an accident.

The Accident Was Not My Fault So I Don’t Have to Pay My Deductible

Fiction: Sometimes, if you have collision insurance you may have to pay your deductible and then wait for the other parties’ insurance company to reimburse you when the claim is paid. If you are in an accident, be prepared.

To keep up with changes in insurance law and trends and with your own changing insurance needs, it’s important to perform and annual car insurance review to be sure your policies are up to date.

Don’t rely on past knowledge or hearsay, get the facts and be sure your auto insurance coverage is right for you.